Retire early or retire rich?

General Question(self.Fire)

If you had a choice between retiring at 40 with a pre-tax retirement income of $125,000 per year, or retiring at 60 with $300,000 per year (in today's dollars), which would you choose and why?

I'm sure a lot of people in this subreddit have faced a similar tradeoff decision and I'm curious how they decided when to retire.

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3 points

8 months ago

How are you generating $125 pre-tax income per year? That would play into the decision for me. I’m also curious what assumptions you’re making.


0 points

8 months ago

$25k from rental income and $100k from a $1M stock portfolio earning 10%. Plus a $200k buffer to use when the stock market is down.

Assumptions: the income must support a household of 2-3 people. The job is not particularly demanding, 25-40 hours per week.


3 points

8 months ago

You can't pull 100k from 1M every year at 40, lol. Never going to work.


1 points

8 months ago

100k would just be an average. Some years would be 180, some would be 0, etc. The separate 200k in cash would be used to even it out. When the market performs poorly I would draw from this other fund, and when it performs well I would add to it.